ICAI: Only peer reviewed firms to audit listed companies
April, 20th 2009
Apex accounting body ICAI on Sunday said all listed companies would be audited by only peer review certified companies for periods starting April 1 this year, and over 1,200 firms have been selected for this review.
It also said the financial statements of companies coming out with IPOs need to be certified by firms which have been issued a certificate from the Peer Review Board.
"From accounting periods commencing on or after April 1, 2009, all listed companies would be audited by only those firms, that have been issued peer review certificate by the Peer Review Board of the Institute of Chartered Accountants of India (ICAI), a release by the apex body said.
Peer review is the evaluation of work or performance by other people in the same field in order to maintain or enhance the quality of the work or performance.
After the multi-crore rupees Satyam scam came to light, SEBI had announced a peer review of Sensex and Nifty firms.
The financial statements of companies coming out with Initial Public Offerings (IPO) should also be certified by the audit firms who have been issued a certificate from the Peer Review Board, the release said.
Around 4,000 firms have already been peer reviewed.
"Further 1,240 firms have been selected for peer review and the process have been initiated. The review of these firms will be completed on fast track," ICAI president Uttam Prakash Aggarwal said, adding that more than 6,000 peer reviewers are there in the country.
The institute in its council's meeting in the past two days also approved the framework for corporate affairs standards which will ensure a fair, transparent and accountable corporate regime in the country, the release said.
Meanwhile, the institute launched the first national webcast on Friday to reach out to its members and students at large globally.